Germany slashes fuel taxes to combat soaring costs for drivers

Relief may be on the way for German drivers—if the Bundesrat approves. But a €1,000 tax-free bonus for workers faces stiff resistance from employers.

, and Administrator

2026 April 24 . 10:21 PM

1 min read

The image shows a poster advertising the electric city of Bergbahn, Germany. It features pictures... — The image shows a poster advertising the electric city of Bergbahn, Germany. It features pictures of buildings, trees, hills, and text describing the city.

Berlin. Parliament Approves Fuel Discount and €1,000 Bonus

Germany slashes fuel taxes to combat soaring costs for drivers

In a roll-call vote on Friday, 453 lawmakers backed a temporary cut to gasoline and diesel taxes, while 134 voted against and one abstained. Earlier, a majority had already supported the so-called "relief bonus." However, the Bundesrat—the upper house representing Germany's federal states—must still approve the legislative changes. A special session of the chamber has been scheduled for Friday afternoon to address the measures.

Starting in May, the tax reductions—initially limited to two months—will lower gasoline and diesel prices by roughly 17 cents per liter. Additionally, employers will be given the option to pay their staff a tax- and social-security-free €1,000 bonus. Yet the response so far has been lukewarm: many companies, along with state governments, have indicated they do not intend to offer the bonus.